United States Lime & Minerals (USLM -0.56%), a leading producer of lime and limestone products for construction, environmental, steel, and other industries, released its second quarter 2025 results on July 30, 2025. The company reported solid double-digit increases in both revenue and net income (GAAP). However, both GAAP EPS and GAAP revenue fell short of Wall Street expectations. Reported revenue (GAAP) was $91.5 million, up 19.6% from the prior year but $5.5 million below the $97.0 million analyst consensus (GAAP). Earnings per share (GAAP) came in at $1.07. This represented an increase compared to Q2 2024, but was $0.07 under what analysts had forecasted (GAAP EPS). Overall, the quarter showed continued growth and robust demand, though investors may note the slower progress compared to consensus estimates and higher-than-anticipated administrative costs.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $1.07 | $1.14 | $0.91 | 17.6% |
| Revenue (GAAP) | $91.5 million | $97.0 million | $76.5 million | 19.6% |
| Gross Profit | $41.9 million | $34.8 million | 20.3% | |
| Operating Profit | $35.7 million | $29.9 million | 19.4% | |
| Net Income | $30.8 million | $26.1 million | 18.3% |
Source: Analyst estimates for the quarter provided by FactSet.
Business Overview and Focus Areas
United States Lime & Minerals mines limestone and processes it into lime and limestone products used in construction, environmental remediation, steelmaking, agriculture, and other sectors. It operates across several locations in the Southern and Midwestern United States, with a core strength in its Texas Lime Quarry, which boasts proven and probable reserves for several decades of future operations.
The company’s recent strategy has prioritized efficient extraction and production, ensuring stable operations from its extensive reserves and serving a broad base of roughly 675 customers. Key success factors include high-quality limestone deposits, production capacity, regulatory compliance, and a diverse customer portfolio across industries like construction and steel. Environmental compliance also remains a critical operational focus, with continued capital expenditures aimed at managing regulatory requirements.
Quarter in Review: Financials, Operations, and Trends
Revenue increased by 19.6% compared to Q2 2024, marking another period of double-digit sales growth. Management attributed the gain to higher sales volumes and stronger selling prices for its lime and limestone products. Demand from construction, steel, and environmental customers remained solid, The company continues to serve several end markets. No further detail was provided on product-category performance, leaving some questions about the exact strength of each customer segment.
Gross profit grew 20.3% year over year, Gross margin (GAAP) was 45.8%, compared to 45.5% in Q2 2024.
One important development was an increase in selling, general and administrative (SG&A) expenses, which rose 26.8% to $6.2 million, outpacing both sales and profit growth. Management disclosed that higher personnel expenses, including stock-based compensation, were the main driver.
Balance sheet strength was notable, with current assets reaching $403.4 million as of June 30, 2025 (GAAP) and equity at $563.3 million (GAAP). Other (income) expense, net was $3.1 million, compared to $2.8 million in Q2 2024, primarily due to interest earned on higher average balances of cash and cash equivalents, reflecting sizeable cash balances and limited debt obligations. The company raised its quarterly dividend by 20% to $0.06 per share from $0.05 per share in the prior year. No disclosure was made on new capital expenditures or regulatory cost updates this quarter.
Outlook and Investor Focus
The latest earnings release offered little in terms of forward-looking financial guidance. Management reiterated strong demand in the construction sector but provided no details on future revenue, EPS, or margin targets. Investors looking for insight on upcoming capital projects, environmental compliance expenses, or product diversification did not receive new updates this time around.
In the coming quarters, investors may want to watch for further updates on the planned production expansion in Texas, as well as progress in operational efficiency. Monitoring SG&A expenses will be key, given their outpacing of both revenue and profit growth. Clarity on regulatory compliance, reserve utilization, and end-market trends will also help provide a fuller picture of company performance in the future.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
